LEASE OPTION PROGRAM
How would you like to be a landlord with NO maintenance to worry about, NO vacancy headaches, HIGHER than average rents, and a well defined EXIT strategy?
Doesn’t that sound like a dream come true? Now, you can be that landlord too! With our “Lease Option Program”, our landlords own headache-free properties with great tenants who not only pay their rents on time, but also pay at a premium too! Better yet, there is no need to hire a property manager to take care of the property and no maintenance to worry about! All the landlords have to remember to do is to deposit their cheques each month … how about that?! Want more? Their property is already SOLD in a few years’ time – no need for agents, for sale by owner, sitting on the market headaches! And the best part, this program is a WIN-WIN solution for both the landlord and the tenant!
How does this “Lease Option Program” work? As the investor-landlord, you will be purchasing a property for a qualified tenant to live and rent from you for a set time frame and by the end of the term, they will exercise the option to purchase the property from you at a pre-determined price. Because this property to them is their home, they will treat it as such … that means, they are not the regular tenants who just wants a place to eat and sleep, but a family who wants to enjoy living in their home!
Sounds great, but where’s the security for the investment – in the end, you are buying the property for the tenant! Here’s what the tenants are prepared to do: they will put down an option deposit (from a percentage of the purchase price or a set amount) to be determined and agreed by both parties and they will pay higher than average monthly rents to show they are highly committed. Essentially, as the investor, your down payment could end up being only 1% of the purchase price, while you collect a greater cash flow each month. With that much commitment to your property and their home, it is highly unlikely they will terminate the lease or walk away. You wouldn’t need to worry about vacancy or getting another qualified tenant to take their place during the term. So, to reward your tenant for their commitment, this program requires the investor-landlord to credit the tenants a portion of the option deposit and monthly rents at the end of the term so that they are in a better position, money-wise, to qualify for the home.
Now, why would a tenant want to pay an option deposit and pay higher monthly rents? These qualified tenants would have loved to start owning their home, but unfortunately, they may not be able to qualify for their dream home with the banks or other financial institutions due to poor credits. Or, they may not have enough down payment to purchase the property. Or worse, there may have been a mishap in their life. So, during the term of the lease, CE Properties will be working with them to build up their credits, their down payment, and other essentials so they will be ready to qualify for that property by the end of the term.
How do you feel, now, knowing that your investment is actually helping a family in need while making you money? CE Properties is always looking for WIN-WIN situations and what better investment can you invest in when you know you’ve helped provide a home for someone who cares.
If you are interested in this type of real estate investing, feel free to contact us and we can provide a one-on-one consultation with you to go through the process of our “Lease Option Program” and together, let’s help families get one step closer to becoming homeowners while making some money on the side!